Home
News
- As Georgieva mentioned, there has been a worldwide surge in interest in CBDCs, with approximately 100 countries now researching, testing, or distributing CBDCs.According to Georgieva, the IMF has been actively engaged in CBDC research and has given technical assistance to a number of member nations as they try to establish their own CBDCs
- Privacy concerns about China’s digital yuan, which Georgieva highlighted as one of six central banks on the border of CBDC development in her speech, were not addressed
- For starters, CBDCs aren’t a one-size-fits-all solution. Because each economy is different, Georgieva said delegates, CBDCs will play a different function in each country
Private cryptocurrencies and stablecoins, according to Kristalina Georgieva, managing director of the International Monetary Fund (IMF), may not be as useful as well-designed central bank digital currencies (CBDCs).
Approximately 100 countries now researching, testing, or distributing CBDCs
Georgieva stated that CBDCs might possibly offer more resilience, more safety, better availability, and lower prices than stablecoins and unbacked crypto assets that are fundamentally volatile in a lecture delivered at an event hosted by the Atlantic Council, an American think tank.
As Georgieva mentioned, there has been a worldwide surge in interest in CBDCs, with approximately 100 countries now researching, testing, or distributing CBDCs. According to Georgieva, the IMF has been actively engaged in CBDC research and has given technical assistance to a number of member nations as they try to establish their own CBDCs. The IMF has learned three lessons from its involvement in CBDC development around the world, according to Georgieva.
For starters, CBDCs aren’t a one-size-fits-all solution. Because each economy is different, Georgieva told delegates, CBDCs will play a different function in each country. CBDCs, Georgieva claimed, might help with financial inclusion in the less developed nations and could also be used as a backup payment method in others.
ALSO READ: CBDCs Have Advantages Over ‘Unbacked Crypto Assets’ & Stablecoins – IMF Chief Economist
Georgieva Encouraged Central Banks To Find A Balance Between Monetary Policy And Cbdc Design
Second, Georgieva addressed the audience that in CBDC design, the IMF considers the privacy and financial stability to be critical. She emphasized the advantages of non-interest-bearing CBDCs in preventing a reduction in traditional bank use, as well as the value of putting restrictions on CBDC holdings to avoid unexpected inflows of bank deposits into CBDC.
Privacy concerns are a possible deal-breaker in many nations when it comes to CBDC legislation and adoption, Georgieva continued. As a result, government officials should strike the right balance. Privacy concerns about China’s digital yuan, which Georgieva highlighted as one of six central banks on the border of CBDC development in her speech, were not addressed. Finally, Georgieva encouraged central banks to find the perfect balance among CBDC design and policy, as well as to promote public-private partnerships to strengthen CBDC characteristics and maintain financial stability.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
